VIETNAM CORPORATE BANK ACCOUNT OPENING
Opening a corporate bank account in Vietnam is essential for businesses operating in the country. Relin Consultants can assist you with Vietnam corporate bank account opening.
The company operates on a two-tier banking system. The state bank of Vietnam is the first tier that serves as the central bank in terms of handling money and banking. The second tier of the banking system in Vietnam includes commercial banks and financial institutions that offer banking and financial services in accordance with the law on credit Institutions serving as the primary regulatory framework.
The commercial banking sector in Vietnam comprises a diverse range of financial institutions, including 5 state-owned commercial banks, 34 joint-stock commercial banks, 4 joint-venture banks, 35 foreign bank branches, and representative offices, 6 financial companies, and foreign banks.
Some of the largest and most well-established banks in the country include Agribank, BIDV, Vietin Bank, Vietcombank, and Techcombank, among others. These banks offer a wide range of banking services and financial products to support the growth and development of businesses in Vietnam.
With its rapidly growing economy, Vietnam presents many opportunities for local and foreign businesses, making opening a corporate bank account an essential part of establishing a successful presence in the country.
Timo, TNEX, and Cake are three innovative digital banks that have disrupted the traditional banking sector in Vietnam in recent years. All three banks are powered by Mambu, a cloud-based banking platform, and offer unique features and services to meet the diverse needs of their customers.
They have revolutionized how people manage their finances, providing accessible and convenient banking solutions in an increasingly digital world. These digital banks are playing a significant role in driving financial inclusion and innovation in Vietnam.
TYPES OF BUSINESS BANK ACCOUNTS IN VIETNAM
In Vietnam, several business bank accounts are available for companies and organizations. Each type of account offers specific features and services to meet the needs of different businesses. The main types of business bank accounts in Vietnam are.
Foreign Currency Bank Account
This type of account allows for the easy transfer of money to a foreign bank. A minimum deposit, usually 300 EUR or USD, is required to open this type of account, and this amount may vary based on the bank’s specific requirements.
This type of account is ideal for daily business transactions in Vietnam. This includes checking accounts, debit cards, money orders, ATM withdrawals, and deposits of coins and banknotes at bank branches. This type of account typically doesn’t earn interest.
Local Currency Bank Account
With this type of account, companies can conduct all domestic business-related transactions in Vietnamese Dong (VND). This includes receiving revenue from domestic transactions, paying domestic expenses, purchasing foreign currency from authorized credit institutions, and other revenue and expense activities related to domestic investment.
Withdrawals in VND from ATMs are usually free of charge, but a minimum deposit and maintaining balance may be required by the bank.
Investment Capital Account
This type of account is used for the receipt and transfer of funds for investment purposes. This includes increasing capital expenditures from third-party nations, capital injections or transfers of funds, receiving funding through international loans, paying interest on loans made to parties outside of Vietnam, and paying dividends and other profits to shareholders derived from operations carried out in Vietnam.
To open this type of account, a Vietnam-based financial institution approved for internal or commercial use is required. It is important to note that the specific requirements and regulations for each type of business bank account in Vietnam may vary between banks and financial institutions. Companies should carefully research and compare the options available to determine which type of account best suits their needs.
BEST BANKS FOR OPENING BUSINESS BANK ACCOUNT IN VIETNAM
There are several commercial banks in Vietnam that offer business bank account services to both local and foreign businesses. Some of the top banks in Vietnam for business account opening are:
- Vietin Bank – Vietin Bank is one of the largest joint-stock commercial banks in Vietnam, offering a range of services including business bank accounts, loans, and other financial services.
- Vietcombank – Vietcombank is another top commercial bank in Vietnam that offers a range of services including business bank accounts, loans, and foreign exchange services.
- Techcombank – Techcombank is one of the fastest-growing commercial banks in Vietnam and offers a range of services including business bank accounts, loans, and investment services.
- BIDV – Bank for Investment and Development of Vietnam (BIDV) is one of the largest state-owned commercial banks in Vietnam and offers a range of services including business bank accounts, loans, and investment services.
- Agribank – Vietnam Bank for Agriculture and Rural Development (Agribank) is another state-owned commercial bank in Vietnam that offers a range of services including business bank accounts, loans, and investment services.
It is important to note that each bank has its own requirements and fees for opening a business bank account, and it is advisable to research and compare the options before making a decision
REQUIREMENTS FOR OPENING A BUSINESS BANKING ACCOUNT IN VIETNAM
The requirements for opening a bank account in Vietnam for a foreign enterprise may vary between banks. However, a general list of documents required includes the following.
- Company registration documents: A copy of the business registration certificate, tax identification number, and business licence.
- Personal identification: A passport or ID card for each authorized signatory and a copy of their residential proof.
- Company’s profile: Information about the company’s background, including its business activities, type of company, ownership structure, and number of employees.
- Company’s financial information: A balance sheet, profit and loss statement, and other relevant financial documents to demonstrate the financial stability of the company.
- Bank reference letter: A letter from a current bank that verifies the company’s financial status and reputation.
- Power of attorney: A notarized power of attorney for the authorized signatories.
- Proof of physical address: A utility bill or a lease agreement to prove the company’s physical address.
It is important to note that the above requirements serve as a general guide and banks may have additional or different requirements. It is best to check with the specific bank for their specific requirements
HOW TO OPEN A BUSINESS BANK ACCOUNT IN VIETNAM
Step 1: Prepare documents
Certain documents and information are required in order to open a business bank account in Vietnam. Certain corporate documents must be submitted in addition to those relating to natural people.
Step 2: Submitting the application
Selecting a bank that provides services for foreigners is the next step. Before filing an application, it is important to research any potential banks because each one has different requirements.
The applicant must submit the required documentation and information for opening a business bank account when the application is approved. Banks will usually request that the applicant must send an account opening form, a letter confirming your company’s primary industry of operation, as well as the Vietnam corporate legal documents, such as ownership documents, business licences, investment licences (if applicable), etc.
Step 3: Depositing the funds
Depositing money into the new company account is the last step for a Vietnamese corporate bank account. This may demand a minimum deposit or other sorts of deposits for the account to be active, depending on the bank’s rules.
The business owner can start doing business in Vietnam once the account is activated and has access to all of the services provided by the preferred bank. Starting a business in Vietnam will be a lot simpler and more effective with dependable financial services.
CHOOSE RELIN CONSULTANTS TO OPEN A CORPORATE BANK ACCOUNT IN VIETNAM
Relin Consultants have a team of professionals who are well aware of the documents and paperwork required for business bank account opening. We have very strong connections with the most reputable banks in Vietnam. Our team will guide you to choose the best business bank account in Vietnam according to your business needs and structures.
Reach out to us at Relin Consultants to learn more about our Corporate Bank Account opening services in Vietnam.
What are the top banks in Vietnam?
The top banks in Vietnam, based on total assets, market capitalization, and other financial metrics, include:
- Vietcombank (Vietnam Commercial Bank)
- BIDV (Bank for Investment and Development of Vietnam)
- Vietinbank (Vietnam Joint Stock Commercial Bank for Industry and Trade)
- Agribank (Agricultural Bank of Vietnam)
- MB Bank (Military Commercial Joint Stock Bank)
These banks offer a range of financial services, including corporate and retail banking, investment banking, and asset management, among others. It is important to research and compare the offerings of these and other banks to find the one that best suits your financial needs and goals.
How long does it take to open a business bank account in Vietnam?
The time it takes to open a business bank account in Vietnam can vary depending on the bank, the type of account you are opening, and the documentation and information that you need to provide. Typically, it can take anywhere from a few days to a couple of weeks to open a business bank account in Vietnam.
However, in some cases, the process may take longer, depending on the complexity of your business and the specific requirements of the bank. It is recommended to visit the bank in person and provide all the required documents, such as a business registration certificate, tax code, and ID of the company’s representative, in order to open a business bank account in Vietnam.
Can a foreigner open a bank account in Vietnam?
Yes, a foreigner can open a bank account in Vietnam. However, the process and requirements for opening a bank account may vary depending on the bank and the type of account being opened.
Generally speaking, foreign individuals and organizations are allowed to open bank accounts in Vietnam. However, the process can be more complicated than for locals, and some banks may require more documentation or proof of identity.
In addition, the government has implemented regulations to prevent money laundering and other financial crimes, so banks are required to follow strict procedures to verify the identity of account holders.
How much money do I need when opening a corporate bank account in Vietnam?
The amount of money required when opening a corporate bank account in Vietnam can vary depending on the bank and the type of account being opened. Some banks may require a minimum deposit to open a corporate bank account, while others may not.
Some banks may require a minimum deposit to open a corporate bank account, this deposit can be around US$1,000 – US$5,000, but it can vary depending on the bank and the type of account.
What do I need to open a bank account in Vietnam?
A Bank application form, Proof of the foreign company’s establishment in Vietnam, documents on the authorized or legal representative with a passport or valid ID, and other documents listed above are needed to open a bank account in Vietnam.
Can I open a bank account in Vietnam with a business visa?
A foreigner can create a bank account in Vietnam as a non-resident. This is highly advised for quick and easy transactions, especially if you intend to stay in Vietnam for longer than six months or directly engage in the Vietnamese market.
IRAS created and developed the Singapore GST Assisted Self-help Kit (GST ASK) to help businesses review the accuracy of their GST submissions and quickly find and fix previous GST problems. In order to avoid the fines that are frequently imposed for any inaccurate GST reporting, it also enables the business to discover the problems and [...]
A foreign business organization can transfer its registration from its current jurisdiction to Singapore through a process known as "Singapore re-domiciliation." Re-domiciliation has the major benefit of preserving corporate history and branding after the entity changes into a Singapore entity. Re-domiciling in Singapore does not also establish a new legal company. It does not affect [...]
The Singapore Employment Act is a crucial piece of legislation that governs the employment relationship between employers and employees in Singapore. It sets out the basic terms and conditions of employment, such as minimum salary requirements, working hours and overtime payment, notice periods for termination, and leave entitlements. The Act aims to protect employees' rights [...]